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HomeMy WebLinkAboutC04-376 Colorado Housing and Finance Authority(iD~f- 3~(o - S ~ ~_ Col.oxnno HOUSING .wo FlN,uvcE AUTHOarrl', Investing in Flome and &uiness. September 30, 2004 K.T. Gazunis Eagle County Housing Dept PO Box 179 Eagle, CO 81631 Dear Ms. Gazunis, I~~® o~ros EAGLE COUNTY HOUSING DEPARTMENT In response to many requests from your constituents, the Colorado Housing and Finance Authority (CHFA) is offering a Reissued Mortgage Credit Certificate (RMCC) Program. This program is an extension of Eagle County's existing and/or previous Mortgage Credit Certificate (MCC) Program, and will allow qualifying current and previous MCC holders to refinance their mortgage loan without losing their tax credit benefit or possibly regain their tax credit if they already refinanced. The program requires your County's approval and agreement prior to CHFA offering it to your residents. Please find the enclosed Reissued Mortgage Credit Certificate Program Agreement and information for your review. It is necessary for your county to pass a resolution authorizing the Reissuance of MCCs. Once you have passed the resolution, sign and return the enclosed Agreement with a copy of the executed resolution. CHFA will mail information about the RMCC Program to all MCC holders in Eagle County, using the enclosed sample postcard. Please contact Norma Andersen or Elfriede Leicht in our Home Finance Division with any questions about the RMCC Program. They can be reached at 1-800-877-2432 x.376 or 303-297-7376 Monday through Friday, from 8:30 am - 5:00 pm or via email at nandersenC«~colohfa.org or eleichtC~colohfa.orp. Thank you for your contribution in making this Program available to Eagle County residents. Yours 'ncerely, ~./ Karen Harkin Director, Home Finance Colorado Housing and Finance Authority Home Finance Division 1981 Blake Street, Denver, Colorado 80202-1272 303-297-7376, 1-800-877-2432, ext. 376, fax: 303-297-0947, tdd: 303-297-7305 www.colohfa.org O ponrea on recyaea paper County Commissioners' Role • Pass a resolution approving the RMCC Program. • Provide a copy of the signed resolution to CHFA. • Sign the enclosed Reissued Mortgage Credit Certificate Program Agreement and return it in the enclosed envelope. Reissued Mortgage Credit Certificate (RMCC) Program Information • The RMCC Program is an extension to currentJprevious Mortgage Credit Certificate (MCC) Programs issued or administered by the Colorado Housing and Finance Authority (CHFA). • The borrower can have the MCC reissued through CHFA IF: - The original MCC was issued through CHFA; AND - The borrower still owns the property for which the borrower was originally issued a MCC, and resides in it as their principal residence; AND - Except only for reason of death or divorce, the borrower(s) are the same person(s) to whom the existing, original MCC was issued; AND - The borrower completes the CHFA RMCC application and can furnish the following documentation: 1. Copy of the Payoff statement from the original loan 2. Copy of the HUD-1 Settlement Statement from the new refinance 3. Copy of the NOTE from the new refinance 4. Copy of the NOTE from the original loan 5. Original MCC 6. Copy of the Decree of Divorce or Death Certificate if there is a change from original recipients • There is a $500 fee for the RMCC payable by the borrower to CHFA. • The new Certified Indebtedness Amount cannot exceed the principal balance of the original loan. • The expiration date of the RMCC will be the earlier of either the original mortgage {oan maturity or the refinanced mortgage loan maturity date. • The borrower is not restricted as to which lender to use to refinance the MCC mortgage loan, as long as the lender does not provide a personal loan to the borrower. • The borrower will deal directly with CHFA to receive a RMCC, not the mortgage lender or the County. • The RMCC replaces the original MCC. • Contact CHFA for further information: 1-800-877-2432, ext. 376 or 303-297-7376 or visit our website at www.colohfa.org. COLORADO HOL'SINC Anv F~N~NCe Aure[osrn lrnrJirty ur /Nmn•:urd /3u~un~ci ,. Reissued Mortgage Credit Certificate Program Agreement September 30, 2004 Board of County Commissioners Eagle County Commissioners Office PO Box 850 Eagle, CO 81631 K.T. Gazunis Eagle County Housing Dept PO Box 179 Eagle, CO 81631 Re: Eagle County, Reissuance Mortgage Credit Certificate Program Dear Board of County Commissioners and K.T. Gazunis: Pursuant to Section 25(e)(4) of the Internal Revenue Code of 1986, as amended (the "Code") and Section 1.25-3(p) of the Income Tax Regulations (the "Regulations"), Eagle County, Colorado (the "MCC Issuer") is authorized to reissue mortgage credit certificates which were originally issued pursuant to a qualified mortgage credit certificate program (the "MCC Program") pursuant to the provisions of Section 25 of the Code and Sections 1.25-1T through 1.25-8T of the Regulations. A qualified MCC Program has previously been implemented by the MCC Issuer. Colorado Housing and Finance Authority ("CHFA") has agreed to serve as program administrator for the MCC Issuer and to reissue MCC's on behalf of the MCC Issuer and in the MCC Issuer's name in compliance with the Code and the Regulations (the "Reissuance Program"). This letter is intended to define CHFA's duties and obligations to the MCC Issuer with respect to the Reissuance Program. CHFA has previously andlor is currently serving as program administrator for the issuance of MCC's pursuant to.the MCC Program. Nothing in this letter is intended to supersede or modify any agreement between CHFA and the MCC Issuer with regard to the MCC Program. CHFA has provided to the MCC Issuer a copy of its Reissued Mortgage Credit Certificate (RMCC) Program Directive (the "Directive"). CHFA shall administer the Reissuance Program pursuant to the terms and provisions of the Directive. CHFA shall provide to the MCC Issuer any and all amendments and supplements to the Directive. Whenever possible, CHFA shall use its best efforts to identify the Reissuance Program as being a cooperative effort between the MCC Issuer and CHFA. CHFA shall on behalf of the MCC Issuer undertake the following duties and responsibilities in administering and implementing the Reissuance Program: Board of County Commissioners, Eagle County Eagle County September 30, 2004 Page 2 Marketing the Program 1. Mail notices to all holders of MCC's advising them of the Reissuance Program. The MCC Issuer also has the right to market the Reissuance Program and, with the prior written approval of CHFA, to issue its own press releases and official notices from time to time about the Reissuance Program. 2. Provide general information about the Reissuance Program on its web site. General Administrative Duties 1. Distribute the Reissued Mortgage Credit Certificate Program Application and Affidavit upon request, review the documents received for program compliance, and issue the Reissued MCC's in the name of the MCC Issuer to eligible borrowers. 2. Answer questions from individual borrowers, lenders and representatives of the MCC Issuer that pertain to the Reissuance Program. 3. Use best efforts to keep Reissuance Program in compliance with all federal and state laws. Reporting 1. Report in writing to the MCC Issuer as requested regarding Reissuance Program utilization and MCC's reissued. CHFA shall charge each borrower in the Reissuance Program a reasonable administrative fee equal to $500.00. CHFA will pay all of the costs of administering and marketing the Reissuance Program as outlined in this letter. CHFA and the MCC Issuer hereby agree to hold each other harmless with respect to the undertakings contained herein. This letter shall be in full force and effect until December 31, 2006. This letter agreement may be renewed and amended by the mutual agreement of the parties. This letter shall be governed by the laws of the State of Colorado. Any notice or communication to be given to the MCC Issuer may be given by delivering the same in writing to: Eagle Housing Authority, Address, Attention Director with a copy to Eagle County Attorney's Office, Address, and if to CHFA, by delivering the same in writing to: Colorado Housing and Finance Authority, 1981 Blake Street, Denver, Colorado 80202-1272, (303) 297-7376, FAX: (303) 297-0947, Attention: Home Finance Division. `Board of County Commissioners, Eagle County Eagle County September 30, 2004 Page 3 This letter is being executed solely for the benefit of the MCC Issuer and CHFA and no other person, partnership, association or corporation shall acquire or have any right hereunder by virtue hereof. The rights and obligations of either party under this letter shall not be assigned without the prior written approval of the parties hereto. If any provision of this letter shall be held or deemed to be or shall, in fact, be invalid, inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions, or in all jurisdictions because it conflicts with any provisions of any constitution, statute, rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question invalid, inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions of this letter invalid, inoperative or unenforceable to any extent whatever. This letter may be executed in two or more counterparts, each of which shall constitute an original but all of which, when taken together, shall constitute but one letter of agreement. The MCC Issuer acknowledges it has been represented by counsel regarding compliance with state and federal laws applicable to implementation of the Reissuance Program. The MCC Issuer has not relied on CHFA or its counsel with respect to such implementation. Very truly yours, COLORADO HOUSING AND FINANCE AUTHORITY By: Milroy A. Alexander, Executive Director ACCEPTED AND AGREED TO AS OF THE DATE SET FORTH ABOVE: EAGLE COUNTY By: ~ Title: